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...A fourth bid was tabled by the Saudi British Bank, a retail bank partly backed by HSBC, according to two people. EY and Recharge did not immediately respond to a request for comment....
...June 20 to September 8; further information and tickets here ‘Naomi’, V&A South Kensington An ode to the life and work of supermodel Naomi Campbell....
...One big invitation to start: Join Elon Musk and the FT’s Peter Campbell today at 6pm GMT/ 1:00pm EST for a keynote discussion and audience Q&A session as part of the FT’s Future of the Car summit....
...“The bumper sticker would say, we’re past the V,” says Michael Gapen, chief US economist at Barclays, referring to the shape of the recovery since the shocking collapse last year....
...He is also encouraged by a “V-shaped” recovery in Asia, its largest market, and less dire forecasts for UK consumers....
...Additional reporting by Peter Campbell...
...Others are relying on more backstops from governments, central banks and international organisations....
...For now, companies have access to liquidity and secured waivers to debt covenants....
...Notably, the bank lending standards have tightened appreciably in G-4 in Q1, driven by the US – see [below] chart....
...Looked at differently, Cyclicals are still priced for a V-shaped recovery, which might not happen....
...In 2016 the BoE introduced the Term Funding Scheme to help shield banks from the adverse consequences of a BoE rate cut to 0.5%....
...Ibstock has already secured covenant amendments with its lenders (e.g. end-2020 leverage test replaced by a liquidity test, June 2021 leverage covenant amended to 3.75x from 3x)....
...its banks .….but its shares haven’t....
...To sellside, and Metro Bank goes down to “sell” at Investec. The upshot is that in spite of everything it remains as close to becoming a functioning metro as a functional bank....
...RTN has a £220m bank facility and a £225m bond (relating to Wagamama). There is no covenant on the bond debt, other than paying the interest....
...ND/EBITDA in line with covenants, FCF significantly ahead due to short-term benefits....
...Within the large-cap banks, we see a superior risk/reward, and greater absolute upside, for Lloyds (Buy) and HSBC (Buy), while OneSavings Bank (Buy) remains (by far) our preferred play within the wider sector...
...The covenant waiver secured from the group’s banks is (quite literally) critical, and buys the time to navigate what looks to be a dramatic - but hopefully fairly brief - dislocation in MRO’s key markets...
...Suntrust also provides covenant details. It’s bleak stuff: • CCL: 2019A EBITDA to consolidated net interest ratio was 30:1 vs. its covenant of 3:1 vs. our 22:1 estimate (2020E)....
...The group did not declare an interim dividend, as expected, in line with the Bank of England’s requirement that the large UK banks should not make any distributions to shareholders during calendar 2020....
...Rate relief drops away in FY22 so the recovery profile, in EPS at least, is not V-shaped....
...Metro Bank goes onto the “buy” list at Investec. Analyst Ian Gordon reckons it’s now cheap enough to offset the fact that it’s Metro Bank....
...The statement highlights the increasing likelihood that intu will require covenant waivers or government support to avoid significant covenant breaches. .......
...We also think the sector is much less disrupted than banks....
...Cineworld’s own covenant stands at 5.5x, vs 3.4x currently. The leverage rises to just above 4x on a proforma basis if we include the Cineplex acquisition....
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